Sunday, December 28, 2014

'Argentina is capable of paying all of its creditors'

Jay Newman (file photo.)

Senior portfolio manager at NML Capital Jay Newman said that “Argentina is capable of paying all of its creditors” given its “vast natural ressources.” He blamed the government for not reaching a deal with the holdouts.

“Argentina is capable of paying all of its creditors. It is a G-20 country with vast natural ressources that simply refuses to pay,” Newman stated in an interview with La Nación newspaper.

He said that taking the battle against the holdouts to Court was Argentina’s “last ressource after it refused to negotiate, which is always preferable.” Newman accused the government of being responsible for the ongoing legal dispute, which he said was a result of “Argentina’s coercive behaviour.”

“We have looked for an opportunity to negotiate a fair deal for over a decade. We have reached out to Argentina dozens of times, in an attempt to end the dispute and to negotiate in good faith, but all our offers have been declined,” he added.

The executive stressed that “a quick deal would benefit” Argentina and that NML Capital remains open to dialogue with Buenos Aires.

“Complying with its contracts would bring great benefits to Argentina’s economy,” Newman stated. “Lower interest rates would allow the government to save millions of dollars annually.”

He went on to point out that “the inflow of US dollars from the international capital market would alleviate right away the serious inflation problem.”